Monday, December 31, 2012

Every
customer in the market is worried about the amount of interest paid on a home
loan during their repayment tenure. A blind calculation gives a result of 100%
of loan amount is the amount of interest paid on a home loan during the tenure
considered if the customer pays the EMI’s for the whole tenure i.e 20 Years. This is a
shocking result to every customer because the home loan interest rate looks very low but
when calculated it is exactly the same amount of higher amount of loan that we
are paying towards interest on the home loan.

If
Some simple measurements taken at the time of availing the home loan then we
can avoid the huge amounts that to be paid towards interest of home loan. Just
follow the stated below before applying the loan

·Make more margin money payment towards the
property

·Apply for lesser loan amount which will
have lesser interest rate

·Opt for least possible tenure

·Opt for possibly higher EMI

·Make part-payments yearly twice at least

·Go for home loan linked life and General insurance

·Opt for Interest saver account if available

Let’s
see how the above measurement will save the interest on Home Loan. Banks
usually give 80% of the property cost as Home Loan, means higher the property
cost, higher the loan, Higher the EMI and Higher the Interest component of EMI.
For the initial years the Interest component will be higher so to avoid that
opt for lesser loan amount, lesser tenure and Higher EMI with which one can
save a very good amount on Home Loan Interest and making part payments will be
most helpful too as the amount paid will be directly deducted from the
outstanding principle of loan account which in turn reduces the interest and
the repayment tenure also.

Wednesday, December 26, 2012

EMI
refers to Equated Monthly Installments a key term in all loan products which
stands for the loan repayments to the bank. The EMI is calculated by taking the
loan amount, Interest Rate and repayment tenure into consideration. All the
Banks and Financial Institutions do the calculations in the same manner so the
amount will not change from one bank to other. All the EMI are calculated on
diminishing rate which is mandatory in Home Loans.

Banks
provide the facility of repaying the loan in Equated Monthly Installments which
is a combination of Principal and Interest Components. The EMI will have
Interest Component higher in the initial stage of tenure and as the tenure goes
on the Principal component increases and the interest component decreases.

The
EMI can be increased if the income of the applicant increases. But the cant be
reduced once it is fixed. If the customer wants to make any part-payments
during the repayment tenure then the paid amount will be directly deducted from
the outstanding principle and tenure will be re-scheduled according to the
latest outstanding amount by keeping the EMI fixed at the same amount. This
provision is available only for the Home loan customers.

Monday, December 24, 2012

Banks
have introduced the product home loan and started funding to customers which
resulted in fulfilling the dream of people who wants to own a house of their
dream. Banks provide home loan on two kinds of rates of Interest one is Fixed
and the other one is Floating. The fixed interest rate will be fixed for a
limited period of time even if the rates in the market fluctuates and floating
interest rates will be increased or decreased according to the rate
fluctuations in the market.

To
avail home loan from any bank or financial institution one need to submit all
his personal and income documents which prove or authenticate his identity and
income to the concerned bank where he wants to avail the loan. Along with the
personal and income documents the customer need to submit the documents of the
property which he is buying. The documents should cover last 15 years
transactions over the property.

Post
submission of all the documents banks usually take a min of one week time to
conform whether they will fund to the property in the name of customer or not
or the application is fit to their policy. Banks will verify the details stated
in the application form so it is always suggestible to stated only required and
genuine information only for which you have authenticated documents to provide.
Banks reserves the right to ask for additional documents if needed. It’s the
bank sole discretion on all the loans. Once the application is approved then
the Home loan will be disbursed by taking the required documentation like Post
dated cheaque’s, signed agreements, sale agreements and disbursement request
forms etc. Post disbursement the customer needs to register the property on his
name and submit in the bank. The whole process takes just one week and fulfills
the dream of a common man of owning a house.

With
the Equated Monthly Installments and longer comfortable tenure to repay without
any worries the product Home Loan is considered as the best product in the
market.

Saturday, December 15, 2012

Banks
have different products for different needs of customers at different levels.
Mortgage loan is one such product which will be of great help to customers who
wants to avail loan for their personal, official or business needs. This
product was designed by keeping all the customers in mind who has a property on
their name and who wants to give it as security to raise funds from the market.

Mortgage
loans ore provides to all income category persons who are salaried or self
employed. The only condition to avail this loan is the applicants should have
repaying capacity with a property which is clear in title and constructed or
approved by the competent authorities.

Banks
will fund up to a maximum of 60% of property cost by taking market value into
consideration. Customers need to submit their income documents and all property
related documents for this process. Banks will do all the required
verifications over the customer profile and the property and disburse the loan
after receiving satisfactory verification reports. This loan will be provided
at a maximum tenure of 10 years with a min of 2% higher interest rates when
compared to the home loan.

Tax
exemptions under section 80(c) are not applicable to any sort of mortgage
loans. Customer can opt for loan linked life insurance even if it is a mortgage
loan. It is not mandatory that the applicant should have a property registered
on his name only, he/she can mortgage property which is registered on parents
or wife’s name. They have to be the co-applicants in the mortgage loan who are equally
liable to repay the loan if the applicant fail to pay in any case.

Thursday, December 13, 2012

Bangalore
an IT hub of India has seen tremendous rise in terms of living standards and in
terms of Economic growth in the last five years. This place was considered as one
of the best place to settle down for a high standard of living. The real estate
also raised along with the requirements of customers who like to purchase
properties in Bangalore.

Real
estate developments in the areas of Bannerghatta Road, Hosur Road, Sarjapur
Road, Yelahanka etc are giving great returns to the buyers of properties in
these areas. Properties in these areas have very good rental values which offer
considerable contribution towards their home loan EMI which makes owning
property a simple task to any buyer.